<PAGE> PAGE 1
000 B000000 12/31/1999
000 C000000 0001058704
000 D000000 N
000 E000000 NF
000 F000000 Y
000 G000000 N
000 H000000 N
000 I000000 6.1
000 J000000 U
001 A000000 PEAK TRENDS TRUST
001 B000000 811-08735
001 C000000 2128155347
002 A000000 C/O THE BANK OF NEW YORK, 101 BARCLAY ST
002 B000000 NEW YORK
002 C000000 NY
002 D010000 10286
003 000000 N
004 000000 N
005 000000 N
006 000000 N
007 A000000 N
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<PAGE> PAGE 2
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<PAGE> PAGE 3
074 S000000 0
074 T000000 45721
074 U010000 5300
074 U020000 0
074 V010000 8.63
074 V020000 0.00
074 W000000 0.0000
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075 A000000 0
075 B000000 45294
076 000000 8.63
077 A000000 Y
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077 Q020000 N
077 Q030000 Y
078 000000 N
080 A000000 NONE
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<PAGE> PAGE 4
086 D020000 0
086 E010000 0
086 E020000 0
086 F010000 0
086 F020000 0
087 A010000 TRUST ENHANCED DIVIDEND SECURITIES
087 A020000 70468N107
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SIGNATURE DONALD J. PUGLISI
TITLE MANAGING TRUSTEE
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
This schedule contains summary financial information extracted from the audited
financial statements of the Trust as of December 31, 1999 and for the year ended
December 31, 1999 and is qualified in its entirety by reference to such
financial statements.
</LEGEND>
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> DEC-31-1999
<PERIOD-END> DEC-31-1999
<INVESTMENTS-AT-COST> 71,014,841
<INVESTMENTS-AT-VALUE> 45,713,319
<RECEIVABLES> 0
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 45,721,219
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 0
<TOTAL-LIABILITIES> 0
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 70,135,118
<SHARES-COMMON-STOCK> 5,300,000
<SHARES-COMMON-PRIOR> 0
<ACCUMULATED-NII-CURRENT> 887,623
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> (25,301,522)
<NET-ASSETS> 45,721,219
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 770,053
<OTHER-INCOME> 0
<EXPENSES-NET> 0
<NET-INVESTMENT-INCOME> 770,053
<REALIZED-GAINS-CURRENT> 0
<APPREC-INCREASE-CURRENT> 1,415,347
<NET-CHANGE-FROM-OPS> 2,185,400
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 423,520
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 7,081,280
<NUMBER-OF-SHARES-SOLD> 0
<NUMBER-OF-SHARES-REDEEMED> 0
<SHARES-REINVESTED> 0
<NET-CHANGE-IN-ASSETS> (5,319,400)
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 0
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 95,314
<AVERAGE-NET-ASSETS> 45,293,764
<PER-SHARE-NAV-BEGIN> 9.63
<PER-SHARE-NII> 0.15
<PER-SHARE-GAIN-APPREC> 0.27
<PER-SHARE-DIVIDEND> 0.08
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 1.34
<PER-SHARE-NAV-END> 8.63
<EXPENSE-RATIO> 0
</TABLE>
DELOITTE &
TOUCHE
- ---------- -----------------------------------------------------------
Deloitte & Touche LLP Telephone: (212) 436-2000
Two World Financial Center Facsimile: (212) 436-5000
New York, New York 10281-1414
INDEPENDENT AUDITORS' REPORT
The Board of Trustees, PEAK TrENDS TRUST:
In planning and performing our audit of the financial statements of PEAK TrENDS
TRUST (the "Trust") for the year ended December 31, 1999 (on which we have
issued our report dated March 8, 2000), we considered its internal control,
including control activities for safeguarding securities, in order to determine
our auditing procedures for the purpose of expressing our opinion on the
financial statements and to comply with the requirements of Form N-SAR, and not
to provide assurance on the Trust's internal control.
The management of the Trust is responsible for establishing and maintaining
internal control. In fulfilling this responsibility, estimates and judgments by
management are required to assess the expected benefits and related costs of
controls. Generally, controls that are relevant to an audit pertain to the
entity's objective of preparing financial statements for external purposes that
are fairly presented in conformity with generally accepted accounting
principles. Those controls include the safeguarding of assets against
unauthorized acquisition, use, or disposition.
Because of inherent limitations in any internal control, misstatements due to
error or fraud may occur and not be detected. Also, projections of any
evaluation of internal control to future periods are subject to the risk that
the internal control may become inadequate because of changes in conditions, or
that the degree of compliance with policies or procedures may deteriorate.
Our consideration of the Trust's internal control would not necessarily disclose
all matters in the internal control that might be material weaknesses under
standards established by the American Institute of Certified Public Accountants.
A material weakness is a condition in which the design or operation of one or
more of the internal control components does not reduce to a relatively low
level the risk that misstatements caused by error or fraud in amounts that would
be material in relation to the financial statements being audited may occur and
not be detected within a timely period by employees in the normal course of
performing their assigned functions. However, we noted no matters involving the
Trust's internal control and its operation, including controls for safeguarding
securities, that we consider to be material weaknesses as defined above as of
December 31, 1999.
This report is intended solely for the information and use of management, the
Board of Trustees of the Trust, and the Securities and Exchange Commission and
is not intended to be and should not be used by anyone other than these
specified parties.
/s/ Deloitte & Touche LLP
March 8, 2000
- ---------------
DELOITTE TOUCHE
TOHMATSU
- ---------------
SUB-ITEM 77E: LEGAL PROCEEDINGS
The Trust and others have been named defendants in a civil lawsuit filed on
June 28, 1999 in the United States District Court for the Southern District of
New York and captioned Dorchester Investors v. Peak International Limited, Peak
Trends Trust, Luckygold 18A Limited, Jerry Mo, T.L. Li and Donaldson, Lufkin &
Jenrette Securities Corporation (99 CIV. 4696). The suit purports to be a
federal securities law class action arising from the initial public offering and
sale of securities by the Trust in May 1998. The complaint alleges violations of
sections 11, 12(a)(2) and 15 of the Securities Act of 1933, as amended, by the
defendants in connection with the public offering. It alleges, in substance,
that the Trust's registration statement and prospectus contained untrue
statements of material facts, omitted to state other facts necessary to make the
statements made not misleading, and concealed and failed to disclose material
facts. The complaint seeks unspecified compensatory damages in favor of the
plaintiff and the other putative class members, and interest and costs,
including counsel fees and expert fees.
